Where does the 1120-S "Officer Compensation" get recorded on the personal 1040? its not showing on K-1.

[IRonMaN · Accepted solution]

That's where the W-2 comes into play.

[IRonMaN]

If that wasn't helpful, I might suggest not preparing returns involving K-1s - you obviously don't understand how information flows to the 1040.

[poolcleaner]

:+1:

[dd4vols]

bless mkedikdian's little heart......

[abctax55]

"....might suggest not preparing returns involving K-1s"   LOL

@mkedikian - Did YOU prepare the 1120-S?  If not, you must have a copy if you know what was on the line for Officer Compensation.  DOES your F 1040 client have a W-2 from the S-Corp?

Lotta' holes in here - NMI.

[mkedikian]

Yes, i prepared the 1120-S and the K-1.  Client did not issue W-2 for his compensation, not even a 1099.  I know he should have, but he didn't.  So now i have a balance that shows on his 1120-S line 7 and i want to know where does that balance on 1120-S Line 7 go on his personal 1040.   

[abctax55]

Nowhere.  Because there shouldn't BE anything on that line.
And to be blunt, you are in over your head on this.
Farm it out, or find someone to mentor you.

[IRonMaN]

Blunt isn't always bad, even though I have never gone that route --------------- at least not today ------ yet.  To borrow a line from Clint Eastwood ------------- a man's got to know his limitations.

[George4Tacks]

@mkedikian You may find this thread enlightening https://accountants-community.intuit.com/questions/1874645-officer-compensation-1125-e-income-where-...

[TaxMonkey]

Its completely wrong, but as other income subject to SE tax or schedule C, is less wrong than other places.

[qbteachmt]

You never issue a 1099-Misc to the shareholder/Partner/Member/Owner of their own entity.

[Accountant-Man]

So he didn't receive any compensation?